Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
Principal Issues:
Loss on personal-use-property
Position:
The rights to hockey tickets would be persoanl-use-property and the loss would be deemed nil.
Reasons:
Personal-use-property
XXXXXXXXXX 5-963233
October 17, 1996
Dear XXXXXXXXXX:
Re: Personal-Use Property
This is in reply to your letter of September 26, 1996 requesting a technical interpretation with respect to the disposition of the rights to XXXXXXXXXX Hockey Seats which you have owned for 12 years and used for personal use.
The situation described in your letter is an actual fact situation and written confirmation of the tax implications inherent in proposed transactions are given by this Directorate only where the transactions are the subject of an advance income tax ruling request submitted in the manner set out in Information Circular 70-6R2. Where a completed transaction is involved the enquiry should be addressed to your local District Tax Services Office. Consequently, we can only offer the following general comments.
For purposes of the Income Tax Act, personal-use property includes any property owned by a taxpayer which is used primarily for the personal use or enjoyment of one or more of the following individuals:
(a)the taxpayer,
(b)a person related to the taxpayer, or
(c)where the taxpayer is a trust, a beneficiary under the trust or a person related to such beneficiary.
In addition, personal-use property includes an option to acquire property that would, if acquired, be personal-use property in the grantee's hands.
When there has been a disposition of personal-use property, any loss that results from the disposition is deemed to be nil and is therefore not deductible against income.
Based on the information in your letter, we agree with the opinion of the XXXXXXXXXX District Taxation Office in that the ticket rights would be considered personal-use property and any loss on their disposition would be deemed nil.
For your information, we have enclosed a copy of Interpretation Bulletin IT-332R Personal-Use Property.
We trust our comments will be of assistance to you.
Yours truly,
for Director
Financial Industries Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
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